On 5 Aug., 2016, Shanghai Huayi (Group)
Company (Huayi), Shanghai 3F New Materials Co., Ltd. (Shanghai 3F) and China
Culture Development (Group) Company (CCDC) signed the Key Assets Reorganisation
Agreement Framework.
Source: Baidu
According to the agreement, Huayi will transfer its 89,388,381 shares (= 20% of
the total) in Shanghai 3F to CCDC, for USD273.10 million (RMB1.81 billion).
Meanwhile, the transaction this time involves assets sale and injection, aimed
at promoting Shanghai 3F’s business transformation and development. According
to CCM’s research, the transaction will be carried out step by step: 1. assets
injection; 2. assets sale; 3. equity transfer.
About CCDC
Founded in April 2003, it is a state-owned enterprise mainly engaged in:
operation of culture innovation industrial parks; investment, financing,
technology R&D and technical service related to culture and relevant
business; publications and related packaging/ decoration, and manufacturing of
related equipment and materials.
From this equity transfer, CCDC will
replace Huayi and become the controlling shareholder of Shanghai 3F. However,
in light of the completely different businesses – fluorochemicals vs. culture/
education – where Shanghai 3F will go remains open to question.
Huayi, Shanghai 3F and CCDC have already reached a primary consensus about the
cooperation: Shanghai 3F will sell its fluorochemicals business to Huayi by
cash, and meanwhile will take CCDC’s culture/ education assets by cash OR by
share issuing.
“In future, we will develop Shanghai 3F into a dominant platform for culture/
education business development and integration,” stated CCDC, “It is expected
to establish an all-round education business, from preschool, K12 (from
kindergarten to Grade 12) to occupational education, to build online and
offline combined service system and to integrate quality education resources at
home and abroad, so as to gradually grow into a culture/ education full chain
platform.”
Regarding the assets reorganisation issue, the 3 sides will sign additional
assets sale/ purchase agreements to make the implementation clear. Since the
reorganisation is comparatively complicated, involving large assets and staff
arrangement, the details are still under negotiation. Hence, Shanghai 3F has
applied to the Shanghai Stock Exchange for continuing trade suspension from 13
Aug., (trade to restart and preproposal about the reorganisation to be unveiled
at the same time on 10 Oct.).
About Huayi’s chemicals assets
In March 2015, Huayi input its core
chemicals assets into its Double Coin Holdings Ltd. for USD1.75 billion
(RMB11.6 billion), and achieved back door listing. Specifically, it included:
-
100% shares of 5 subsidiaries, including
Shanghai Huayi Energy Chemical Co., Ltd., Shanghai Huayi Fine Chemical Co.,
Ltd., Shanghai Huayi New Material Co., Ltd., Shanghai Tianyuan (Group) Co.,
Ltd. and Shanghai Huayi Group Investment Co., Ltd.
-
Partial shares of 2 subsidiaries, including
55% stake in Shanghai Huayi Information Technology Co., Ltd. and 30% stake in
Shanghai Huayi Group Finance Co., Ltd.
Now Huayi divides its chemicals assets into 3 parts, covering energy chemicals,
fine chemicals and chemicals service, and the corresponding products involve
basic chemicals, fine chemicals and related new materials. In addition, it also
develops service business to support chemicals business, such as trade,
logistics, information technology, solutions and financing.
This article comes from China Fluoride Materials Monthly Report 1608, CCM
About CCM:
CCM is the leading market intelligence provider for China’s
agriculture, chemicals, food & ingredients and life science markets. Founded in 2001, CCM offers a
range of data and content solutions, from price and trade data to industry
newsletters and customized market research reports. Our clients include Monsanto,
DuPont, Shell, Bayer, and Syngenta. CCM is a brand of Kcomber Inc.
For more
information about CCM, please visit www.cnchemicals.com or get in touch with us
directly by emailing econtact@cnchemicals.com or calling
+86-20-37616606.
Tag: fluoride